By Richard Hines
As India wishes to regulate the use of crypto assets, the government includes crypto in her previously stated G20 presidency agenda as announced by Nirmala Sitharaman, India’s minister of finance.
G20 Presidency’s Take on Global Crypto Regulation
Among the topics presented by the Reserve Bank of India (RBI) in its monthly Financial Stability Report (FSR) are issues relating blockchain and cryptocurrency.
The RBI on last Thursday published its FSR and covered wide range of topics including Decentralized Finance (DeFi), cryptocurrencies and many more.
India made it known to the public that under its G20 presidency, there is high possibility of designing a structure that would focus on the regulation of DeFi, unbacked crypto assets as well as stable coins.
Not limited to that, the G20 presidency also put forth the potential banning this developing sector (DeFi, unbacked crypto assets and stable coins).
From the many reasons that the Reserve Bank of India (RBI) stated for the regulation/banning of crypto is the high volatility of crypto market.
Shaktikanta Das who is the current RBI governor also warned as mentioned that if crypto is not banned, it is most likely to be cause of the next financial crisis.
Ajay Seth, the India’s economic affairs secretary said in December that the G20 are working on the development of structured policy on crypto assets with the sole aim of improving crypto global regulation.
It is an absolute truth that India is one of the leading nations with high crypto adoption. Different report noted that the growth of crypto assets/currencies has been particularly noteworthy in India.
However, it is unclear as to how the government will move forward in terms of regulating such assets.
India Central Bank Supports Banning of Foreign Cryptos
The central bank of India has been consistently advocating for the outlawing of any cryptocurrencies that is not issued by the government such as Bitcoin and ether.
This was supported by the governor of RBI issuing a warning about how crypto would cause the next financial crisis if not banned.
It was also noted by India finance minister that for the effective regulation or prohibition of cryptocurrencies, there must be a major international cooperation among different countries.